Indian government-run steel producer Rashtriya Ispat Nigam Limited (RINL) which operates a 7.3 million mt steel mill in the southern port town of Vishakhapatnam is on the verge of closure, after shutting down its second blast furnace last Thursday, owing to a shortage of coking coal, company sources said on Monday, September 16.
RINL had earlier shut down a blast furnace in March 2024 and the third blast furnace currently operational has coking coal stocks to last five or six days, the sources said. With no coking coal stocks available owing to the shortage of funds, RINL is looking at being forced to halt production for the first time in the 42 years of its operations, the sources said.
Meanwhile, other officials said that shutting down the third blast furnace is the safe thing to do, considering the plant’s present situation.
Coal brought via ships from other countries is stuck at Gangavaram Port and Visakhapatnam Port, but RINL has failed to meet the shipment charges as it is struggling with a cash crisis.
The company has submitted a detailed report to the Ministry of Steel stating that it will require at least $1.19 billion to run three blast furnaces at full capacity and to pay off debts estimated at $833 million.
The ministry has assured the infusion of a working capital of $357 million to keep RINL operational, but no funds have been released so far, sources said.
